PRODUCT HIGHLIGHTS SHEET No A (irc) AUD (hedged): 1.45% Capital - - PDF document

PRODUCT HIGHLIGHTS SHEET

PRODUCT HIGHLIGHTS SHEET Prepared on 31 August 2020 This Product Highlights Sheet is an important document.

• It highlights the key terms and risks of this investment product and complements the Singapore Prospectus1

(“Prospectus”).

• It is important to read the Prospectus before deciding whether to purchase shares in the product. If you do

not have a copy, please contact us to ask for one.

• You should not invest in the product if you do not understand or are not comfortable with the accompanying

risks.

• If you wish to purchase this product, you will need to make an application in the manner set out in the

Prospectus.

JPMORGAN FUNDS – EMERGING MARKETS DEBT FUND (THE “SUB-FUND”)

Product Type Investment Company Launch Date 14 March 1997 Management Company JPMorgan Asset Management (Europe) S.à r.l. Custodian J.P. Morgan Bank Luxembourg S.A. (which is the Depositary) Trustee Not Applicable Dealing Frequency Daily, on every Singapore Dealing Day Capital Guaranteed No Expense Ratio for financial year ending 30 June 2019 A (irc) – AUD (hedged): 1.45% A (mth) – USD: 1.45% PRODUCT SUITABILITY WHO IS THE PRODUCT SUITABLE FOR? The Sub-Fund is only suitable for investors who: – seek investment return through exposure to emerging markets bonds; – understand the portfolio may have significant exposure to higher risk assets (such as high yield and emerging market debt) and are willing to accept those risks in search of potential higher returns; and – are looking to use it as part of an investment portfolio and not as a complete investment plan. The principal of the Sub-Fund may be at risk. You should consult your financial advisor on the suitability of the Sub-Fund for you if you are in doubt. Further Information Refer to “Sub-Fund Descriptions – Emerging Markets Debt Fund”

• f the Prospectus for

further information on product suitability. KEY PRODUCT FEATURES WHAT ARE YOU INVESTING IN? You are investing in a sub-fund of the Fund, an open-ended investment company organised as a société anonyme under the laws of the Grand Duchy

• f Luxembourg and qualifying as a SICAV and a UCITS.

The Sub-Fund aims to achieve a return in excess of the bond markets of emerging countries by investing primarily in emerging market debt securities, including corporate securities and securities issued in local currencies, using derivatives where appropriate. Periodic dividends may be made available at the sole discretion of the Management Company in respect of the share classes with the suffix “(irc)” and “(mth)” at the relevant frequency described in the Prospectus. Dividends paid by “(irc)” share classes are further adjusted, up or down for, respectively, an estimated positive or negative interest rate carry. Distribution of dividends are not guaranteed. Dividends may in certain circumstances be paid out of capital, resulting in any erosion of the capital invested. Refer to “Fund Business Operations”, “Share Classes and Costs” and “Sub-Fund Descriptions – Emerging Markets Debt Fund” of the Prospectus for further information on features

• f the product.

1 The Prospectus is available for collection from the Singapore Representative at 168 Robinson Road,

17th Floor, Capital Tower, Singapore 068912 or any appointed Singapore distributor.

PRODUCT HIGHLIGHTS SHEET

Investment Strategy At least 67% of assets invested, either directly or through derivatives, in debt securities issued or guaranteed by emerging market governments or their agencies and by companies that are domiciled, or carrying out the main part

• f their economic activity in an emerging market country. These may include

Brady bonds, Yankee bonds, government and corporate Eurobonds, and bonds and notes traded in domestic markets. There are no credit quality or maturity restrictions applicable to the investments. The Sub-Fund may invest in onshore debt securities issued within the PRC through China-Hong Kong Bond Connect. The Sub-Fund may hold up to a maximum of 5% of its assets in contingent convertible bonds. Refer to “Sub-Fund Descriptions – Emerging Markets Debt Fund”

• f the Prospectus for

further information on the investment strategy

• f the Sub-Fund.

Parties Involved WHO ARE YOU INVESTING WITH? JPMorgan Funds is the umbrella fund company of the Sub-Fund. The Management Company is JPMorgan Asset Management (Europe) S.à r.l.. The joint Investment Managers: – JPMorgan Asset Management (UK) Limited; – J.P. Morgan Investment Management Inc.; and – JPMorgan Asset Mangement (Asia Pacific) Limited. The Depositary is J.P. Morgan Bank Luxembourg S.A.. Refer to “Fund Business Operations” of the Prospectus for further information on the role and responsibilities of these entities and what happens if they become insolvent KEY RISKS WHAT ARE THE KEY RISKS OF THIS INVESTMENT? The value of your investment may fall as well as rise and you may get back less than you originally invested. The Sub-Fund may have a higher volatility to its NAV due to its investment policy when compared to sub-funds investing in global markets, with broader investment policies and/or are a less volatile asset class. Refer to “Risk Descriptions” and “Sub-Fund Descriptions – Emerging Markets Debt Fund” of the Prospectus for further information on risks and

• ther associated risks of

the product. Market and Credit Risks YOU ARE EXPOSED TO MARKET AND CREDIT RISKS China risks – Investing in the domestic market of the People’s Republic

• f China (PRC) is subject to the risks of investing in emerging markets and

additionally risks that are specific to the PRC market such as risks in investing through China-Hong Kong Bond Connect. Contingent convertible bonds are likely to be adversely impacted should specific trigger events occur. This may result in the bond converting to equity at a discount, the value being written down and/or coupon payments ceasing

• r being deferred.

Debt securities (bonds) including those issued or guaranteed by governments and their agencies carry credit risk and interest rate risk. The Sub-Fund is also exposed to risks associated with investing in Government debt, Below Investment grade debt, Investment grade debt and Unrated debt. Emerging markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency, greater financial risks, higher volatility and lower liquidity than developed markets. Credit – A bond will generally lose value if the issuer’s financial health deteriorates, or appears likely to. An issuer could go into default (become unwilling or unable to make payments on their bonds), which often will make the bond illiquid or worthless.

PRODUCT HIGHLIGHTS SHEET

YOU ARE EXPOSED TO CURRENCY RISKS Currency – Movements in currency exchange rates can adversely affect the return of your investment. Investing in a share class not denominated in SGD will expose you to additional currency risks. Hedging – Any measures taken to offset specific risks could work imperfectly. Hedging may be used to mitigate currency, duration, market or credit risk. Hedging involves costs, which reduce investment performance. Liquidity Risks The Sub-Fund is not listed and you can redeem only on a Singapore Dealing Day. If the total requests for redemptions and switches out of the Sub-Fund on any Valuation Day exceeds 10% of the total value of Shares in issue of the Sub- Fund, the Management Company reserves the right to defer any requests in excess of 10% until the next Valuation Day. On the next Valuation Day(s), deferred requests will be dealt with in priority to later requests. Product Specific Risks YOU ARE EXPOSED TO DERIVATIVES RISKS The Sub-Fund may use derivatives to achieve its investment objective. The Sub-Fund may also, within its prescribed limits, invest in derivatives for hedging and Efficient Portfolio Management purposes. The value of derivatives can be volatile because a small movement in the value of the underlying asset can cause a large movement in the value of the derivative, resulting in losses in excess of the amount invested by the Sub-Fund. FEES AND CHARGES WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? Payable directly by you – You will need to pay the following fees and charges as a percentage of your gross investment sum: Initial Charge Class A: Up to 3%#. Redemption Charge Class A: Currently 0% (Max: 0.5%). Switching Fee Class A: Up to 1%.

# Initial charge is calculated based on a percentage of the net investment

amount. Refer to “Share Classes and Costs” and “Sub- Fund Descriptions – Emerging Markets Debt Fund” of the Prospectus for further information on fees and charges. Payable by the Sub-Fund from invested proceeds – The Sub-Fund will pay the following fees and charges to the Management Company and other parties: Annual Management and Advisory Fee (AMAF) Class A: 1.15% per annum (a) Retained by Management Company (b) Paid by Management Company to distributor (trailer fee) (a) 27% to 100% of AMAF (b) 0% to 73%2 of AMAF Operating and Administrative Expenses Class A: 0.30% per annum (Max). You should check with the agent or distributor through whom you subscribe for Shares of the Sub-Fund whether they impose other fees and charges not included in the Prospectus.

2 The range may change from time to time without prior notice. Your distributor is required to disclose to

you the amount of trailer fee it receives from the Management Company.

PRODUCT HIGHLIGHTS SHEET

VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? The relevant prices of selected share classes of the Sub-Fund will usually be made available on the website of the Singapore Representative (www.jpmorganam.com.sg), on the following Singapore Dealing Day after each relevant Singapore Dealing Day. HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? There is no cancellation period for the Sub-Fund. You may request for the redemption of your Shares on any Singapore Dealing Day through the relevant appointed Singapore distributor through which your Shares were purchased. The redemption proceeds will normally be paid within 5 Singapore Dealing Days. Redemption instructions received by the Singapore Representative or the Hong Kong Representative before 17:00 (Singapore time) on a Singapore Dealing Day will normally be executed at the relevant NAV per Share on that

• day. Instructions received after 17:00 (Singapore time) on a Singapore Dealing

Day will normally be executed at the NAV per Share calculated on the next Singapore Dealing Day. All instructions to convert or redeem Shares shall be dealt with on an unknown NAV basis before the determination of the NAV for that day. Singapore distributors may impose their own dealing deadlines/ practices. The redemption proceeds that you will receive will be the NAV per Share multiplied by the redemption amount, less redemption charge (if any). An example is as follows: 1,000 Shares X SGD 10.00 = SGD10,000.00 Redemption Amount NAV per Share Gross Redemption Proceeds SGD10,000.00 – Nil = SGD10,000.00 Gross Redemption Proceeds Redemption Charge (0%) Net Redemption Proceeds Please note that different share classes offered pursuant to the Prospectus may be denominated in different currencies. Refer to “Investing in the Sub-Funds” of the Prospectus for further information on valuation and exiting from the product. CONTACT INFORMATION HOW DO YOU CONTACT US? You may contact JPMorgan Asset Management (Singapore) Limited (Company Registration No. 197601586K), the Singapore Representative, at 168 Robinson Road, 17th Floor, Capital Tower, Singapore 068912, telephone number: (65) 6882 1328, www.jpmorganam.com.sg or any appointed Singapore distributor.

PRODUCT HIGHLIGHTS SHEET

APPENDIX: GLOSSARY OF TERMS Efficient Portfolio Management means the cost-effective use of derivatives, instruments and techniques to reduce risks or costs or to generate additional capital or income. The techniques and instruments will relate to transferable securities or money market instruments, and the risks generated will be consistent with the Sub-Fund’s risk profile and be adequately captured by the risk management process. Fund means the JPMorgan Funds. Hong Kong Business Day means a day other than Saturday or Sunday or a local holiday on which banks in Hong Kong are open for normal banking business. Hong Kong Representative means JPMorgan Funds (Asia) Limited, which has been appointed as the authorised distributor of the Fund in Asia and is also the Fund’s representative in Hong Kong. Please refer to “Share Classes and Costs – Nominee Information” section of the Prospectus for details of the nominee arrangement. NAV means net asset value. Shares means shares in the Sub-Fund. SICAV means Société d’Investissement à Capital Variable. Singapore Dealing Day means a day which is all of the following: (i) a day other than Saturday

• r Sunday or a local holiday on which banks in Singapore are open

for normal banking business, (ii) Valuation Day and (iii) a Hong Kong Business Day. Singapore Representative means JPMorgan Asset Management (Singapore) Limited, which is the Fund’s representative in Singapore and has also been appointed as the authorised distributor of the Fund in Asia. Please refer to “Share Classes and Costs – Nominee Information” section of the Prospectus for details of the nominee arrangement. Singapore Shareholder refers to a Singapore distributor or nominee of the Singapore distributor, who acts as an agent to an investor and holds Shares on behalf of an

• investor. For the avoidance of doubt, references to an “investor” are

references to a person (whether an individual or other legal person) applying for or investing in Shares through such a Singapore distributor. Sub-Fund means JPMORGAN FUNDS – EMERGING MARKETS DEBT FUND. UCITS means Undertaking for Collective Investments in Transferable Securities. Valuation Day means a day on which a Sub-Fund accepts dealing requests and calculates a NAV per Share for each Share Class. Subject to any further restrictions specified for a Sub-Fund under the relevant “Sub- Fund Description” section of the Prospectus, a Valuation Day is a week day other than a day on which any exchange or market on which a substantial portion of a Sub-Fund’s investments is traded, is closed. Please refer to the “Glossaries” section of the Prospectus for more details.